Brexit and Other Key Issues for CFOs and Corporate Treasurers

The Brexit vote has had an immediate impact by triggering significant volatility in the financial markets and the UK’s sovereign credit rating dropped to AA/Aa1. Companies have had to respond quickly. The shape of the future relationship between the UK and the EU, which is currently subject to much speculation, will determine the future impact of Brexit, but companies are making contingency plans. Management teams of groups with UK companies or UK trade are now assessing and prioritizing the risks and potential opportunities that Brexit introduces and reviewing their budgets. They are also considering whether to make changes to their corporate organization and funding structure in response to the Proposed US Tax Regulations to avoid adverse tax consequences. This client note sets out a number of near-term practical considerations for CFOs and Corporate Treasurers arising from Brexit and the Proposed US Tax Regulations. We also attach a summary checklist of considerations.